Are only enterprises holding a monopoly position in Vietnam prohibited from imposing unfavorable conditions on customers?
Which enterprise shall be considered to hold the monopoly position in Vietnam?
Pursuant to the provisions of Article 25 of the Law on Competition 2018 on enterprises holding a monopoly position:
Enterprises holding a monopoly position
An enterprise shall be considered to hold the monopoly position if there is no enterprise competing on the goods or services dealt in by such enterprise on the relevant market.
Thus, an enterprise shall be considered to hold the monopoly position if there is no enterprise competing on the goods or services dealt in by such enterprise on the relevant market.
Are only enterprises holding a monopoly position in Vietnam prohibited from imposing unfavorable conditions on customers? (Image from the Internet)
Are only enterprises holding a monopoly position in Vietnam prohibited from imposing unfavorable conditions on customers?
Pursuant to the provisions of Article 27 of the Law on Competition 2018 on prohibited abuse of a dominant position or abuse of a monopoly position:
Prohibited abuse of a dominant position or abuse of a monopoly position
1. An enterprise or group of enterprises holding a dominant position on the market is prohibited from:
a) Selling goods or providing services below costs that drives or probably drives competitors out of the market;
b) Imposing irrational buying or selling prices of goods or services or establishing minimum resale price maintenance (RPM), which causes or possibly causes damage to customers;
c) Restricting production and distribution of goods, services, limiting markets, preventing technical and technological development, which causes or possibly causes damage to customers;
d) Applying dissimilar commercial conditions in similar transactions, which leads to or possibly leads to prevention of other enterprises from market entry or expansion or exclusion of other enterprises;
dd) Imposing conditions on other enterprises to conclude goods or services purchase or sale contracts or requesting customers to accept obligations which have no direct connection with subjects of such contracts, which leads to or possibly leads to prevention of other enterprises from market entry/expansion or exclusion of other enterprises;
e) Preventing other enterprises from market entry or expansion;
g) Other prohibited abuse of a dominant position prescribed in other laws.
2. An enterprise holding a monopoly position is prohibited from:
a) Performing acts prescribed in Points b, c, d, dd and e Clause 1 hereof;
b) Imposing unfavorable conditions on customers;
c) Taking advantage of the monopoly position to unilaterally modify or cancel the contract already signed without justifiable reasons;
d) Other prohibited abuse of a monopoly position prescribed in other laws..
Thus, an enterprise holding a monopoly position is prohibited from imposing unfavorable conditions on customers according to point b Clause 2 of this Article. In addition, an enterprise or group of enterprises holding a dominant position on the market is also prohibited from performing acts prescribed in Points b, c Clause 1 of this Article, which cause or possibly cause damage to customers (unfavorable conditions on customers).
Not only are enterprises holding a monopoly position prohibited from imposing unfavorable conditions on customers, but also enterprises and groups of enterprises with a dominant position on the market are also prohibited.
How much is the maximum fine imposed for the abuse of the monopoly position in Vietnam?
Pursuant to the provisions of Clause 1 Article 111 of the Law on Competition 2018:
Fines imposed on violations of competition law
1. The maximum fine for violations of regulations on anti-competitive agreements, abuse of the dominant position on the market, abuse of the monopoly position shall be equal to 10% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation, but not less than the minimum fine imposed on violations prescribed by the Penal Code.
2. The maximum fine for violations of economic concentration regulations shall be 5% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation.
3. The maximum fine for violations of regulations on unfair competition shall be VND 2 billion.
4. The maximum fine for other violations of this Law shall be VND 200 million.
5. The maximum fines prescribed in Clauses 1, 2, 3 and 4 of this Article shall apply to violations committed by organizations; a violation of regulations on competition law committed by an individual shall be subject to a half of fine that imposed on an organization committing the same violation.
6. The Government shall provide guidelines for amounts of fines imposed on violations prescribed in this Law.
Thus, the maximum fine for violations of regulations on the abuse of the monopoly position shall be equal to 10% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation, but not less than the minimum fine imposed on violations prescribed by the Criminal Code.
* Note: The maximum fines prescribed above shall apply to violations committed by organizations; a violation of regulations on competition law committed by an individual shall be subject to a half of fine that imposed on an organization committing the same violation (Clause 5 Article 111 of the Law on Competition 2018)
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